The federal government is leaning on provincial and territorial governments to chip in to help cash-starved municipalities facing large financial shortfalls because of the COVID-19 pandemic.

The Federation of Canadian Municipalities (FCM) has asked the Trudeau government for at least $10 billion in aid to cover an estimated $10- to $15-billion loss in revenue for local governments in the near term.

The organization representing hundreds of municipalities across the country said Ottawa was in the strongest financial position to provide support.

But Prime Minister Justin Trudeau emphasized the provincial role in dealing with municipalities when asked by opposition MPs Thursday during a virtual session of the House of Commons committee on COVID-19 about whether financial support for local governments is coming.

“Our constitution requires that most of the funding for municipalities flow through the provinces,” Trudeau said in response to a question from NDP infrastructure and communities critic Taylor Bachrach.

“We are working with the provinces, as we continue to work with the cities, to ensure that we’re able to support this order of government that delivers the vast majority of services to Canadians with very little financial means.”

Cities have sounded the alarm since March regarding their budgetary shortfalls created by the pandemic, as revenues from municipal user fees and transit fares diminish while in some cases deferring the payment of property taxes. Toronto, for example, projects a $1.5-billion loss in 2020.

Municipalities have also been at the frontline of the COVID-19 response, operating some local health services, long-term care homes and programs for vulnerable communities. Cities are prevented by law from running deficits.

The FCM had requested the federal government for direct support, with $7.6 billion provided under its proposed funding model through the federal Gas Tax Fund, which provides local governments with direct funds for local infrastructure projects. In its request, the organization did not ask for provinces or municipalities to match funds.

“Requiring provincial matching could cause delays given the varied fiscal capacities of provincial/territorial governments,” said the organization in a report last month.

Trudeau, who spoke to Canada’s premiers on Thursday, added that the issue of transit funding has come up in discussions with provincial and territorial leaders.

“We will continue to work with the provinces, which have jurisdiction over the municipalities,” he said.

Infrastructure Minister Catherine McKenna said in French during the same committee hearing that Ottawa was “working very closely with municipalities and are listening to them.”

“But as the prime minister stated, it’s up to the provinces to help,” she said, in response to a question from Conservative critic Luc Berthold.

“We are working closely with the municipalities — that we’re listening to them to see what their issues are, how we can support them — but of course we need the help of the provinces and territories.”

She added that the federal government has approved hundreds of new infrastructure projects for funding in the last week.

In a statement Thursday, the head of the organization representing Canada’s urban transit industry questioned why federal support to date was going to air travel instead of public transit relied upon by lower-income and essential workers.

“The people we rely on to keep hospitals clean and grocery stores open take transit to work. Transit is essential because they are essential,” said Marco D’Angelo, CEO of the Canadian Urban Transit Association. “But we cannot keep delivering our essential service in a timely way without federal support soon. And we do not understand why Air Canada receives help, but vital transit service does not.” The organization is requesting $400 million a month from Ottawa to help recoup revenues.

Meanwhile, Ontario Liberal Leader Steven Del Duca urged Premier Doug Ford and Trudeau on Monday for the creation of a $4-billion fund for the province’s cities and towns.

In its report, the FCM said provinces and territories could help municipalities during the pandemic with direct support for COVID-19 emergency response and services for vulnerable populations and helping to backstop property tax deferral programs.

Edmonton Mayor Don Iveson, chair of the FCM’s big city mayors’ caucus, told reporters last month that it would be ideal if provinces could play a role, “but the buck stops with the federal government.”